Infosys, India's second-largest IT services company, on Friday announced a share buyback programme of Rs 8,260 crore and a special dividend of Rs 4 per equity share.

New Delhi: Infosys, India's second-largest IT services company, on Friday announced a share buyback programme of Rs 8,260 crore and a special dividend of Rs 4 per equity share while announcing the financial results for the third quarter of the financial year 2018-2019. The board has approved a proposal for the company to buyback the fully paid equity shares of face value of Rs 5 for an amount aggregating up to Rs 8,260 crore, maximum buyback size, Infosys said in a regulatory filing.

Infosys has fixed a share buyback price at Rs 800 per equity share (maximum buyback price), 16.89 per cent premium to the Friday’s closing price of Rs 684.35 on National Stock Exchange. “ADS holders are permitted to convert their ADS into equity shares, and, subsequently, opt to sell such equity shares on the Indian stock exchanges during the buyback period,” Infosys said in a statement. Infosys shares closed at Rs 684.35, up 0.68 per cent on NSE on Friday.

Infosys, at the maximum buyback price and the maximum buyback size, is aiming to repurchase as much as 10.32 crore (103.25 million) equity shares, comprising 2.36 per cent of the paid-up share capital of the company. Infosys has fixed January 25, 2018 as the record date for the special dividend and January 28, 2019 as the payment date of the special dividend of Rs 4 to all the eligible shareholders.

If the equity shares are bought back at a price below the maximum buyback price, the actual number of equity shares bought back could exceed the maximum buyback shares, but will always be subject to the maximum buyback size. Infosys shall utilise at least 50 per cent of the amount earmarked as the maximum buyback size for the share buyback, i.e., Rs 4,130 crore (minimum buyback size) and based on the minimum buyback size and maximum buyback price, the company would purchase a minimum of 5.16 crore (51.625 million) equity shares, Infosys said in an exchange filing.

Infosys share buyback: IT giant announces Rs 8,260 crore buyback; special dividend of Rs 4Description:Infosys, India's second-largest IT services company, on Friday announced a share buyback programme of Rs 8,260 crore and a special dividend of Rs 4 per equity share. Times Now